Distributors that have Line-Item, Profit Analytics (LIPA) can see and use seven different purposes for Profits to then grow them sensationally.
Economists See Three Purposes for Profits
- Profits are a Cost of Capital. Shareholders want a return on their money in the business. The more risk a shareholder has of not getting their money back, the higher the return they expect. Most distributors don’t earn a competitive, (after-tax) Return On (Shareholders’) Investment (ROI). Non-employed, minority shareholders would sell for “book value” in a heartbeat and do better reinvesting in muni bonds.
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